A new report from CSC finds that, faced with rising regulatory demands and operational pressures, general partners (GPs) are increasingly turning to outsourcing and technology to manage special purpose vehicles (SPVs) more efficiently.
CSC surveyed 400 GPs across the Americas, Europe (including the UK), and Asia Pacific to uncover how today’s market shifts and operational pressures are reshaping SPV management strategies.
Regulatory compliance and risk mitigation are firmly at the top of GPs’ agendas, with nearly three-quarters identifying the growing regulatory burden and the associated reputational and financial risks as key concerns. Navigating regulatory changes was cited as the single greatest challenge when setting up and running SPVs, followed closely by managing operational differences across multiple geographies.
These challenges come at a pivotal time as markets grow increasingly competitive, complex, and cross-border. Despite inflation and geopolitical uncertainty, GPs remain focused on deploying dry powder and capitalising on LP appetite for differentiated, long-term value.
Amid these shifts, GPs anticipate growing demand for more direct, customized, and flexible investment structures. Co-investment funds are expected to see the highest demand over the next three years, followed by sector-specific and evergreen funds.
“Traditional funds are still very active, but LP demands are rising and will continue to grow,” notes Thijs van Ingen, global head of Corporate Solutions, CSC. “LPs want access to special deals like club structures and separately managed accounts, pushing GPs to innovate with co-investments, evergreen funds, or special joint venture vehicles. While these structures aren’t new, they’re growing in volume and adding significant complexity to reporting and underlying operations.”
In response, 63 per cent of GPs report that they have already significantly increased outsourcing to external providers. Their operational priorities for the next phase of growth include centralized SPV portals (63 per cent), improved cash management (58 per cent), and enhanced entity management systems (45 per cent).
“The question for GPs is no longer how to manage change, but how to lead through it,” says Ram Chandrasekar, global head of Fund Solutions, CSC. “What GPs need today is a connected ecosystem that provides a centralized view across their entire corporate portfolio. SPVs, funds, investments—each represents a distinct set of data points, and managers must connect these seamlessly to operate effectively. By investing in operational enhancements and building strategic partnerships, GPs are ensuring smoother SPV management, greater scalability, and stronger resilience.”
